March 16, 1999
Orlando, FL

Contact: Tracy Rushwin
(407) 855-5500, extension 105

GALAXY FOODS ANNOUNCES FORMATION OF NEW DIVSION

ORLANDO, FLORIDA (March 16, 1999) - Galaxy Foods Company (NASDAQ: GALX), makers of healthy cheese and dairy-related products, today announced the formation of a Nutraceutical division which will be headed by Mike Rapport. Mr. Rapport worked with General Nutrition Centers for the past 20 years, most recently as president and chief operating officer of GNC Canada. As president for GNC Canada, he was the brand manager for the Canadian product line. Mr. Rapport also developed GNC locations and product formulations for the Canadian market place.

The new division, under the guidance of Mike Rapport, will develop and market nutraceutical products for the health food and mass markets. The flagship product in this line is Galaxy's Ultimate Smoothie which is available in five flavors including chocolate, vanilla, orange, choccochino and strawberry. A nutraceutical product is one which improves your overall well-being while fulfilling your daily nutritional needs. Galaxy intends to expand its nutraceutical division to include an array of protein and soy based products.

Galaxy's president, Angelo Morini, stated "We are thrilled to have Mike Rapport join the Galaxy team. We feel his background in nutraceutical products will be invaluable to developing our new product positions. We hope that under Mike's leadership, this new division will achieve the same success and growth we have enjoyed with our Retail line of products."

Galaxy Foods Company is the inventor and originator of a new, healthier and better way to make cheese and dairy-related products. Galaxy's products are primarily low or no fat (no saturated fat), have no cholesterol and no lactose and contain more vitamins and minerals than conventional cheese. Galaxy brand names include Veggie, formägg, Soyco, Soymage, Wholesome Valley, and Lite Bakery. For more information, contact Tracy Rushwin at (407) 855-5500, extension 105. You may also obtain more information from our site on the World Wide Web at http://www.galaxyfoods.com.